Delaware

Security Deposit Amount

Delaware law restricts security deposits to a maximum of one month's rent for residential leases of one year or more. For leases shorter than a year, landlords may charge more, but it should be stated clearly in the lease agreement.

For furnished rental units, the deposit may be equal to two months' rent.

Pet Deposits: Delaware allows landlords to charge additional deposits for pets. These pet deposits are subject to the same rules as the general security deposit in terms of return and permissible deductions.

Options for Holding

Landlords in Delaware are required to hold security deposits in an account separate from personal funds. However, they are not required to place the deposit in an interest-bearing account unless the rental property contains more than 25 units.

Notification Requirements

Delaware law requires landlords to provide tenants with a written receipt for the security deposit. If the security deposit is placed in an interest-bearing account (for properties with more than 25 units), the landlord must also notify the tenant of the bank’s name and address where the deposit is held.

Payment of Interest Earned

If the rental property has more than 25 units, the landlord is required to place the deposit in an interest-bearing account. The interest earned on the deposit must be returned to the tenant at the end of the tenancy. The interest rate is determined by the average rate offered by insured financial institutions.

For properties with fewer than 25 units, landlords are not required to pay interest on security deposits unless otherwise agreed upon in the lease.

Timeline for Returning

Landlords in Delaware must return the security deposit within 20 days of the tenant vacating the premises. Along with the deposit, the landlord must provide a written, itemized statement of any deductions made from the deposit.

Claims Process

Landlords can deduct from the security deposit for damages, unpaid rent, and other costs associated with lease violations. The landlord must provide the tenant with a written, itemized list of damages and deductions within the 20-day period. If no such statement is provided, the landlord forfeits the right to retain any portion of the deposit.

Landlords in Delaware are permitted to deduct the following from the security deposit:

• Unpaid rent
• Damage beyond normal wear and tear
• Unpaid utility bills (if stated in the lease)
• Cleaning costs necessary to return the unit to its original condition
• Other financial losses directly resulting from lease violations

Normal wear and tear, such as minor scuffs or carpet wear, cannot be deducted from the security deposit.

‍

If the landlord fails to return the deposit or provide an itemized list of deductions within the 20-day window, the tenant may sue for the return of the full deposit. If the tenant wins the case, the landlord may be liable for double the amount of the deposit.

None